Earls Court and Olympia Group (EC&O) announced on 28 October it has entered a joint venture agreement with US-based MGM Mirage to develop a £150m gaming and entertainment complex in the Olympia Exhibition Centre in London.

Designed to complement Olympia’s current exhibition and convention business, the agreement would see more than 300,000sq ft of Olympia converted into a venue comprising restaurants, retail outlets, entertainment bars and a Las Vegas-style casino.

The complex will be created within Olympia Two and under the joint venture, MGM Mirage will take a controlling stake of 82.5 per cent in the project, with Earls Court taking a 17.5 per cent stake.

The development is, however, contingent on the anticipated government reform of gaming laws and receipt of planning permission. The reform is expected to happen in 2005 – so building work on the project will not begin until then.

CEO of Earls Court and Olympia Group, Andrew Morris, said: “We are delighted to be working with MGM Mirage on this exciting opportunity.

“While this project depends on government deregulation and on the consent of our planning MGM authority, hosting a gaming and entertainment complex alongside an exhibition centre has proven a successful combination in other countries and we want to be at the vanguard of its introduction into the UK.”

Lloyd C Nathan, managing director of MGM Mirage Development, Europe, said: “We aim to use our global experience to create a destination which will appeal to a wide audience and which has not been seen before here in the UK.

“We will work to create a dynamic and appealing environment which we believe will ensure Olympia is one of the most popular leisure and business destinations in the UK and the rest of Europe.”

EC&O has said the project does not signal a move away from exhibitions – instead it is "a way of making best use of the space we have."

Olympia Two was chosen as it is a part of the venue which is "under utilised and less suitable for exhibitions because it is our smallest hall and split over several levels." Shows which use Olympia Two will be relocated to other halls within the complex.

The joint venture announcement follows news in June that UK gaming group, Gala, has agreed a joint venture with another US casino operator, Harrah’s Entertainment, to develop eight casinos throughout Britain in a bid to take advantage of the propose reform of UK gambling laws.

Kerzner International also announced earlier this month plans to build a £210m hotel and casino complex at the site of the Millennium Dome in a deal with Anschutz Entertainment Group, which is to create a £135m sports and entertainment arena within the Dome. Details: www.mgmmirage.com and www.eco.co.uk